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Cathay Pacific

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Bella Chan

on 16 June 2014

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Transcript of Cathay Pacific

Founded in 1946
International airline

Headquarter in Hong Kong International Airport

Offer cargo & passenger services
> 182 destinations

Owned subsidiary:
Hong Kong Dragon Airlines Limited
Assets of the company
Fleet of aircraft : 140 aircraft
Staff : More than 31,600 people
Parent Company: Swire Pacific
Category : International
Sector : Airlines
Positioning : Premium
Target Group : Corporates /
Upper Middle Class /
Middle Class
Vision : Be the world’s best airline
Group Member: Chan Chau Yee, Ruby 8461339
Chu Wen Yee, Eunice 8473899
Leung Hei Lam, Heidi 8464446
Chan Yan Yi, Bella 8401339
Yau Pui Pui 8429719
Yu Li hua, Christine 8476970

Principles of Management
Lingnan Institute of Further Education
(around 24,200 are employed in HK)
Investments : Catering
Aircraft maintenance
Ground handling companies
Shareholder : AHK Air Hong Kong Limited
Hong Kong Dragon Airlines Limited
Air China Limited
(1) Unique service & product
(2) Technological change & product innovation
= fast-paced in airline industry
Service guarantee ------> Increase customer satisfaction
Cathay Pacific(67.17%) > Hong Kong Airlines(61.45%)
Joined hands with Tosca
(fine-dining Italian restaurant)
Customer-oriented strategy
‘Service Straight from the Heart’
Concern customer needs
Customer always in 1st priority & the center of the service
Service: performed by well-trained & high-quality staff

The inflight service manager, Lucy Tsui said
Strategic innovation in service
Encourage innovation
Request staff -> offer new ideas & suggestion online
Online community & channel -> discuss & comment

Sustainable Development Strategy
Embed sustainability into mainstream thinking
5. Provide many destination
Air tickets : expensive, still attract people

Built up a good reputation & well services quality
Put a lot in the operating expenses

e.g. 8% : maintenance fee
39% : fuel
17% : staff
14% : landing & parking
Remaining : Others

Maintain the quality of aircraft
On time landing and parking
Relatively expensive ticket price
Loyalty & Membership program
Program for frequent flyers - Marco Polo Club offer membership privileges
Contributes towards the membership status

Keep the frequent flyers & enjoy diff. benefits
e.g. reservation, faster check-in, baggage
privilege, lounge access

1. Threat of new entrants
Compare with Hong Kong Airlines
Based in HK,covers about 30 cities regionally
2. Threat of substitutes
Porter's 5 Force
Other depart transportation from HK
Trains, buses and cruise
Wealth of experience in airline industry
>66 years

“Marco Polo Club” & “Asia Miles”

Let passengers travel in class with their own attitude by offering various classes

Renowned of its plush journey

Working with Dragon Air, they offer more destinations

Official Mobile Application
3. Bargaining power of suppliers
Rely too heavily on the international onward moving traffic

Limited market share
Planes and oil are high capital product
International competitors

Unstable fuel price

Labour costs raising
4. Bargaining power of buyers
More international destinations comparing to other domestic airlines
HK Airline:
serves 30 cities in Asia
63 destinations, less long destination
CX Airways:
serves 168 destinations in 42 countries and territories on five continents
5. Buyers and industry rivalry
Emirate :
3,400 flights per week, flight to 133 cities in 74 countries
Singapore Airlines:
flight to 62 destinations in 35 countries
e.g Beijing, Bangkok, Shanghai
Long term contracts with suppliers -> not easy to change
Focus on providing superior service
General Manager of Inflight Services,
James Ginns
“We are committed to providing the best inflight experience to our passengers and the food we serve on our aircraft is an integral part of that experience."
Regularly review : HR, remuneration policy, employee's performance etc.
Platform for public ->
Interaction & increase the customer satisfaction
Instill philosophy -> employees
Customer relationship building
" One of the most important elements of our training program is to introduce company's philosophy to the cabin crews and share with them our best practice in customer service excellence.'
CX: 182 destinations in 41 countries, total 140 aircrafts
---> set specific targets & move toward their goal which resulted in 20 commitments.
5 “priority areas” in different departments, business units, subsidiaries
Enable Cathay Pacific to be differentiate in the HK airline industry.
Invest heavily of 93 more aircraft in the home city & the delivery will due for 2024
HX : 63 destination, 23 aircrafts only
Provide many destination
Charge higher-than-average price
Build brand loyalty & lower sensitive to prices
Outstanding image & distinctive reputation in HK
Put Cathay Pacific = 1 st
Market development:
Capitalize on the Asian market growth -> bigger market share

Cathay Pacific Service Ltd (CPSL) enhance the competitiveness of HKIA
Product development:
Cooperate with Chinese restaurant
e.g. Lung King Heen

Increase service & product quality, reputation

on-time arrival comparison of asian airline
Michelin three-star rating from Four Seasons
On-time arrivals = important -----> passengers
Employee’s working attitude & satisfaction = important for it’s management.

Motivate the employees -> maintain service quality & (+) image to the customers.

reward -> good working performance
e.g. free package with flight ticket & accommodation positive image provided to the customers.
SWOT analysis
Full transcript